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Determinants of FDI attractiveness: A MCI model approach

Abstract : This study aims to use a Multiplicative Competitive Interaction approach to identify the major factors that influence the decision to engage in foreign direct investment (FDI) by focusing on the ease of doing business index and its subindexes (institutional quality) and GDP (market size). Results are drawn from an annual dataset on 175 countries between 2005 and 2015. Empirical findings suggest institutional effect dominates market size effect, and therefore, to be more competitive in attracting FDI, countries must increase their business environment's efficiency by mainly focusing on judicial system improvement.
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Soumis le : lundi 13 juillet 2020 - 15:11:17
Dernière modification le : samedi 6 août 2022 - 03:22:30


  • HAL Id : hal-02898195, version 1



Helmi Hammami, Moez Hammami, Siriki Nahoua Coulibaly, Mariem Marzouk. Determinants of FDI attractiveness: A MCI model approach. Economics Bulletin, 2020, 40 (2), pp.1033-1048. ⟨hal-02898195⟩



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